Morgan Hindry of Lismore keeps a close eye on his money while studying, even though being a self-confessed spender.
Morgan Hindry of Lismore keeps a close eye on his money while studying, even though being a self-confessed spender. Jay Cronan

Saving is tough for Generation-Y

THEY want more, they want it now and they are willing to borrow what is not their's to get it.

Does that sound familiar Generation Y-ers?

While this selfish stereotype of today's 20-somethings is widely accepted, new research shows the majority of Generation Y is actually fiscally responsible.

Rest Industry Super will release the WealthStyle: Gen Y's Spending, Saving and Debt Choices white paper today.

The white paper found Generation Y was developing good saving habits early on, despite most of it being for short-term goals, like travel.

Almost four in five Gen Y-ers are saving some money every month.

It also revealed the generation was not as "frivolous about spending as popular perceptions", suggesting most non-housing expenditure was spent on essential items, such as food - something Lismore student Morgan Hindry spends his funds on.

The 22-year-old lives at home, has no credit card, personal or car loan debt and studies full-time at Southern Cross University.

He also works five days a week at Woolworths.

The primary school education student said a lot of his spending went towards food.

"I eat whatever is convenient," Mr Hindry said.

"I am pretty busy, I work and study full-time.

"When I have worked for a year on a teacher's salary I should start saving."

While Mr Hindry isn't saving now, he said he saved for two years after he finished school to travel.

"When I first left school I worked for two years as a labourer and I went overseas," he said.

Over 28% of white paper survey participants said they had a credit card or store card and they paid off the outstanding balance.

The median debt for that type of credit, which can attract an interest rate of about 18%, was between $1000-$2000.

RI Advice financial planner Rick Rutten said it was much easier nowadays to get a credit card.

"Part of being young is you don't think about the long-term," he said.

"We as a society generally, ever since the '50s and '60s, have been borrowing money to get something rather than saving for it."

 

Are people living beyond their means? Sound off in the comments below.



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